Motorola Now a Lenovo Company – What Difference Does it Make

Lenovo has completed its Motorola Acquisition and labeled it as a Lenovo Company. The deal closed for $2.91 billion, which is much less than what Google paid for Motorola, but again Google also holds on to most of Motorola patents and a 4.7 percent stake in Lenovo.

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With this Acquisition, Lenovo is now world’s third largest smartphone manufacturer in the world and Motorola will function as wholly owned subsidiary with its headquarters in Chicago, USA.

Lenovo doesn’t has a reputation for ruining brands and it did manage to re-instate IBM’s PC business post acquisition. Chinese manufacturer assures the same for Motorola brand. Here is what Lenovo has to say:

“Motorola has already built solid momentum in the market, and their recent results show consumers are excited about their exceptional products that stand out for their design and simplicity,” said Liu Jun. “With the complementary strengths of our two companies, we expect to sell more than 100 million mobile devices this year – including smartphones and tablets – by leveraging the Lenovo brand’s leading market position in China, our shared momentum in emerging markets, and Motorola’s strong foothold in mature markets like the U.S.”

Both Motorola and Lenovo Brand will co-exist

Lenovo won’t be killing Motorola brand. Lenovo aims to get some exposure in Western market which is mostly dominated by Samsung and Apple, and since Motorola already has a strong presence in the region, it will act as Lenovo’s window in western world where Lenovo is still viewed as a PC maker.

Motorola will continue with Pure Android and Fast Upgrade commitment

Motorola has shown a fresh and inspiring face in its second innings after Google acquisition and that won’t change in foreseeable future.

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“As excited as we are about what’s changing, we’re also pleased with what we are carrying forward with us. We will be a wholly owned subsidiary of Lenovo and remain headquartered in Chicago’s Merchandise Mart while maintaining offices around the world, including in Silicon Valley. The iconic Motorola brand will continue, as will the Moto and DROID franchises that have propelled our growth over the past year. We will continue to focus on pure Android and fast upgrades, and remain committed to developing technology to solve real consumer problems. And we will continue to develop mobile devices that bring people unprecedented choice, value and quality.”

Lenovo will gain from combined R&D

Motorola has definitely put a lot of work in its new generation of handsets. Lenovo will benefit from this research and perhaps we can see more ergonomic design on Lenovo phones in future. Lenovo will also gain from Motorola’s proximity to Google and the Nexus experience. It wouldn’t be out of place to expect faster Android version upgrades on Lenovo smartphones.

Motorola will benefit from Strong Lenovo presence in Asian Markets

Motorola will gain a lot in Asian markets where Lenovo has a well established distribution, retail and service network. In countries like India and China where Motorola wrapped up its operation years ago, this might help Motorola improve its service quality. Although, don’t expect Motorola products to be selling in brick and mortar stores.

Back home in China, Lenovo is threatened by emerging giant Xiaomi. In fact, Lenovo will soon launch a new brand which will have an internet based sales model. Motorola follows a similar retail model in markets like India, where it doesn’t have grass root distribution network.

Motorola’s acquisition or merger won’t be changing much on consumer end. All Good things will be shared and bad ones eliminated. Lenovo expects to make Motorola profitable in next 5 to 6 quarters. we have to agree with Google “Motorola is in great hands with Lenovo, a company that’s all-in on making great devices.”

“Today we achieved a historic milestone for Lenovo and for Motorola – and together we are ready to compete, grow and win in the global smartphone market. By building a strong number three and a credible challenger to the top two in smartphones, we will give the market something it has needed: choice, competition and a new spark of innovation,” said Yang Yuanqing, chairman and CEO, Lenovo. “This partnership has always been a perfect fit. Lenovo has a clear strategy, great global scale, and proven operational excellence. Motorola brings a strong presence in the U.S. and other mature markets, great carrier relationships, an iconic brand, a strong IP portfolio and an incredibly talented team. This is a winning combination.”